ALLIANCE WORLD DOLLAR GOVERNMENT FUND, INC Avenue of the Americas New York, New York October 27, 2006

Investments ALLIANCE WORLD DOLLAR GOVERNMENT FUND, INC. 1345 Avenue of the Americas New York, New York 10105 October 27, 2006 Dear Stockholders: The Board of Directors (the Directors ) of Alliance World Dollar Government Fund, Inc. ( AWDGF ) is pleased to invite you to a Special Meeting of Stockholders of AWDGF (the Meeting ) to be held on Tuesday, December 12, 2006. At this Meeting, we are asking you to approve the acquisition of the assets and the assumption of the liabilities of AWDGF by Alliance World Dollar Government Fund II, Inc. ( AWDGF II ) and the dissolution of AWDGF. The proposed acquisition is described in more detail in the attached Prospectus/Proxy Statement. AWDGF II is much larger than AWDGF, with a similar investment objective and slightly broader investment policies. We anticipate that the proposed acquisition will result in benefits to the stockholders of AWDGF as more fully discussed in the Prospectus/Proxy Statement. The Directors of AWDGF have given careful consideration to the proposed acquisition and have concluded that the acquisition is in the best interests of AWDGF and its stockholders. The Directors recommend that you vote for the proposed acquisition of AWDGF by AWDGF II. If the acquisition of AWDGF by AWDGF II is approved by stockholders of AWDGF, each AWDGF stockholder will receive shares of AWDGF II having an aggregate net asset value ( NAV ) equal to the aggregate NAV of the stockholder s shares in AWDGF. AWDGF would then cease operations. You will not be assessed any sales charges or other stockholder fees in connection with the proposed acquisition. We welcome your attendance at the Meeting. If you are unable to attend, we encourage you to authorize proxies to cast your vote. The Altman Group, Inc. (the Proxy Solicitor ), a proxy solicitation firm, has been selected to assist in the proxy solicitation process. If we have not received your proxy as the date of the Meeting approaches, you may receive a telephone call from the Proxy Solicitor to remind you to submit your proxy. No matter how many shares you own, your vote is important. Sincerely, Marc O. Mayer President

Investments ALLIANCE WORLD DOLLAR GOVERNMENT FUND, INC. 1345 Avenue of the Americas New York, New York 10105 (800) 221-5672 NOTICE OF A SPECIAL MEETING OF STOCKHOLDERS SCHEDULED FOR DECEMBER 12, 2006 To the stockholders of Alliance World Dollar Government Fund, Inc. ( AWDGF ), a Maryland corporation: Notice is hereby given that a Special Meeting of the Stockholders of AWDGF (the Meeting ) will be held at 1345 Avenue of the Americas, 41st Floor, New York, New York 10105 on Tuesday, December 12, 2006, at 11:30 a.m., Eastern Time, to consider and vote on the following proposal, which is more fully described in the accompanying Prospectus/Proxy Statement dated October 27, 2006: 1. To approve an Agreement and Plan of Acquisition and Liquidation (the Plan ) among AWDGF, Alliance World Dollar Government Fund II, Inc. ( AWDGF II ), a Maryland corporation, and Alliance- Bernstein L.P. providing for the acquisition by AWDGF II of all of the assets and assumption of all of the liabilities of AWDGF in exchange for shares of AWDGF II (the Proposal ). A vote in favor of this Proposal by the stockholders of AWDGF also will constitute a vote in favor of the dissolution of AWDGF and termination of its registration under the Investment Company Act of 1940, as amended. 2. To transact any other business that may properly come before the Meeting and any adjournments or postponements thereof. Any stockholder of record of AWDGF at the close of business on October 13, 2006 (the Record Date ) is entitled to notice of, and to vote at, the Meeting or any adjournments or postponements thereof. Proxies are being solicited on behalf of the Board of Directors. Each stockholder who does not expect to attend the Meeting and vote in person is requested to complete, date, sign and promptly return the enclosed proxy card, or to submit voting instructions by telephone as described on the enclosed proxy card. By Order of the Board of Directors, New York, New York October 27, 2006 Marc O. Mayer President YOUR VOTE IS IMPORTANT Please indicate your voting instructions on the enclosed proxy card, sign and date it, and return it in the envelope provided, which needs no postage if mailed in the United States. Your vote is very important no matter how many shares you own. In order to save any additional costs of further proxy solicitation and to allow the Meeting to be held as scheduled, please complete, date, sign and return your proxy card promptly. AllianceBernstein and the AB Logo are registered trademarks and service marks used by permission of the owner AllianceBernstein L.P.

PROSPECTUS/PROXY STATEMENT Acquisition of the Assets and Assumption of the Liabilities of ALLIANCE WORLD DOLLAR GOVERNMENT FUND, INC. By, and in Exchange for Shares of, ALLIANCE WORLD DOLLAR GOVERNMENT FUND II, INC. October 27, 2006 TABLE OF CONTENTS Questions and Answers 4 Proposal Approval of an Agreement and Plan of Acquisition and Liquidation among AWDGF II, AWDGF and AllianceBernstein L.P. 6 Summary 7 Comparison of Operating Expense Ratios 7 Comparison of Investment Advisory Fees 7 Comparison of Investment Objectives and Policies 7 Principal Risks 9 Federal Income Tax Consequences 9 Service Providers 9 Comparison of Stockholder Services 10 Comparison of Business Structures 10 Information about the Proposed Transaction 11 Introduction 11 Description of the Plan 11 Reasons for the Acquisition 12 Description of Securities to be Issued 13 Dividends and Other Distributions 14 Surrender and Exchange of AWDGF Stock Certificates 14 Federal Income Tax Consequences 14 Capitalization Information 15 Trading History and Share Price Data 15 Information about the Funds 15 Management of the Funds 15 Advisory Agreement and Fees 15 Administrator 16 Other Service Providers 16 Voting Information 17 Legal Matters 17 Experts 18 Financial Highlights 18 Appendix A Fee Table 19 Appendix B Comparison of Investment Objectives and Policies 21 Appendix C Description of Principal Risks of the Funds 33 Appendix D Other Information 35 Appendix E Form of Agreement and Plan of Acquisition and Liquidation among Alliance World Dollar Government Fund II, Inc., Alliance World Dollar Government, Inc. and AllianceBernstein L.P. 39 2

Appendix F Capitalization 54 Appendix G Trading History and Share Price Data 55 Appendix H Legal Proceedings 56 Appendix I Share Ownership Information 58 Appendix J Financial Highlights 59 3

QUESTIONS AND ANSWERS The following questions and answers provide an overview of key features of the proposed acquisition and of the information contained in this Prospectus/Proxy Statement. Please review the full Prospectus/Proxy Statement before casting your vote. 1. What is this document and why did we send it to you? This is a combined Prospectus/Proxy Statement that provides you with information about the proposed acquisition (the Acquisition ) of the assets and liabilities of Alliance World Dollar Government Fund, Inc. ( AWDGF ) by Alliance World Dollar Government Fund II, Inc. ( AWDGF II ) and the subsequent dissolution of AWDGF. (AWDGF II and AWDGF are each a Fund and collectively, the Funds ). This document also solicits your vote on the Acquisition by requesting that you approve the Agreement and Plan of Acquisition and Liquidation dated as of September 20, 2006 (the Plan ), among AWDGF II, AWDGF and AllianceBernstein L.P. (the Adviser ). On September 13, 2006, the Directors approved and declared advisable the Acquisition of AWDGF by AWDGF II and the subsequent dissolution of AWDGF and directed that the Acquisition and dissolution be submitted to the stockholders for approval at a Special Meeting of Stockholders to be held on December 12, 2006, 11:30 a.m., Eastern Time (the Meeting ). You are receiving this Prospectus/Proxy Statement because you own shares of AWDGF. Each stockholder of record of AWDGF as of the close of business on the record date has the right under applicable legal and regulatory requirements to vote on the Acquisition and dissolution. The Acquisition will not occur unless it is approved by AWDGF stockholders. This Prospectus/Proxy Statement contains the information you should know before voting on the proposed Acquisition. You may contact a Fund at 1-800-221-5672 or write to a Fund at 1345 Avenue of the Americas, New York, NY 10105. 2. Who is eligible to vote on the Acquisition? Stockholders of record of AWDGF at the close of business on October 13, 2006 (the Record Date ) are entitled to notice of and to vote at the Meeting or any adjournment or postponement of the Meeting. If you owned shares of AWDGF on the Record Date, you have the right to vote even if you subsequently sold your shares. Each share is entitled to one vote. Shares represented by properly executed proxies, unless revoked before or at the Meeting, will be voted according to stockholders instructions. If you sign and return a proxy card but do not fill in a vote, your shares will be voted FOR the Acquisition. If any other business properly comes before the Meeting, your shares will be voted at the discretion of the persons named as proxies. 3. How will the Acquisition work? The Plan provides for (i) the transfer of all of the assets of AWDGF to AWDGF II, (ii) the assumption by AWDGF II of all of the liabilities of AWDGF and the subsequent redemption of shares of AWDGF, (iii) the liquidating distribution to AWDGF stockholders of shares of AWDGF II, equal in aggregate net asset value ( NAV ) to the NAV of their former AWDGF shares and (iv) the dissolution of AWDGF. As a result of the Acquisition, stockholders of AWDGF will no longer hold shares of AWDGF, and instead, will become stockholders of AWDGF II having the same aggregate NAV as the shares of AWDGF that they held immediately before the Acquisition. Please note that AWDGF stockholders who do not participate in AWDGF s Dividend Reinvestment Plan will receive cash in lieu of fractional shares. You will not be assessed any sales charges or other stockholder fees in connection with the proposed Acquisition. The Acquisition will not occur unless it is approved by the stockholders of AWDGF. 4

4. Why is the Acquisition being proposed? Based on the recommendation of the Adviser, the Board of Directors of AWDGF (the Board ) concluded that participation by AWDGF in the proposed Acquisition is in the best interests of AWDGF and its stockholders. The Board also concluded that the proposed Acquisition would not dilute stockholders interests. In reaching this conclusion, the Board considered, among other things, the Funds similar investment objectives and investment policies, expense benefits for stockholders of AWDGF expected to result from the Acquisition, the investment performance and trading history of the Funds, the costs of the Acquisition, and the tax-free nature of the Acquisition. 5. When will the Acquisition take place? If the stockholders of AWDGF approve the Acquisition on December 12, 2006, the Acquisition is expected to take place in the first quarter of 2007. 6. Where May I Find Additional Information Regarding the Funds? Additional information about the Funds is available in the Statement of Additional Information ( SAI ) dated October 27, 2006 that has been filed with the Securities and Exchange Commission ( SEC ) in connection with this Prospectus/Proxy Statement. The SAI and each Fund s Annual Report to Stockholders, which contain audited financial statements for the Funds respective fiscal years, are incorporated by reference into this Prospectus/Proxy Statement. In addition, the Semi-Annual Report for AWDGF for the six months ended April 30, 2006 and the Annual Report for AWDGF II for the 12 months ended March 31, 2006 are also incorporated by reference into this Prospectus/Proxy Statement. To request a copy of any of these documents, please call AllianceBernstein Investments, Inc. at (800) 227-4618. All of this information is filed with the SEC. You may view or obtain these documents from the SEC: In person: By phone: By mail: By electronic mail: On the Internet: at the SEC s Public Reference Room in Washington, D.C. 202-551-8090 (for information on the operations of the Public Reference Room only) Public Reference Section, Securities and Exchange Commission, Washington, DC 20549-0102 (duplicating fee required) publicinfo@sec.gov (duplicating fee required) www.sec.gov The shares of the Funds are listed and publicly traded on the New York Stock Exchange ( NYSE ) under the following symbols: AWDGF AWG and AWDGF II AWF. Reports, proxy statements and other information concerning the Funds may be inspected at the offices of the NYSE. Additional copies of the annual and semiannual reports, as well as the Prospectus/Proxy Statement and SAI, are available upon request without charge by writing to or calling the address and telephone number listed below. By Mail: AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278-6003 By Phone: For Information: (800) 221-5672 For Literature: (800) 227-4618 Other Important Things to Note: You may lose money by investing in the Fund. The SEC has not approved or disapproved these securities or passed upon the adequacy of this Prospectus/Proxy Statement. Any representation to the contrary is a criminal offense. 5

PROPOSAL APPROVAL OF AN AGREEMENT AND PLAN OF ACQUISITION AND LIQUIDATION AMONG AWDGF II, AWDGF AND ALLIANCEBERNSTEIN L.P. On September 13, 2006, the Board of Directors of AWDGF declared advisable and voted to approve the Plan and the Acquisition, subject to the approval of the stockholders of AWDGF. The Plan provides for (i) the transfer of all of the assets of AWDGF to AWDGF II, (ii) the assumption by AWDGF II of all of the liabilities of AWDGF, (iii) the liquidating distribution to AWDGF stockholders of shares of AWDGF II, equal in aggregate NAV to the NAV of their former AWDGF shares and (iv) the dissolution of AWDGF. Each AWDGF stockholder will receive the number of full shares of AWDGF II, plus fractional shares for stockholders that participate in a Dividend Reinvestment and Cash Purchase Plan ( DRIP ) and cash in lieu of any fractional shares for non-drip participating stockholders, having an aggregate NAV that is equal to the aggregate NAV of the stockholder s shares of AWDGF. Stockholders of AWDGF will recognize no gain or loss, except with respect to any cash received in lieu of fractional AWDGF II shares by non-drip participating stockholders. If approved by stockholders of AWDGF, the Acquisition is expected to occur in the first quarter of 2007. An exchange of AWDGF shares for AWDGF II shares at NAV may result in AWDGF stockholders receiving AWDGF II shares with an aggregate market value on the date of exchange that is higher or lower than the market value of their shares immediately prior to the exchange. The reason for this difference is that the market price for shares of the Funds in relation to their NAVs may be different, i.e., a Fund s shares may trade at different discounts or premiums to its NAV. The stockholders of AWDGF must approve the Acquisition for it to occur. Approval of the Acquisition requires the affirmative vote of the holders of a majority of the votes entitled to be cast. The Acquisition does not require approval of the stockholders of AWDGF II. A quorum for the transaction of business by stockholders of AWDGF at the Meeting will consist of the presence in person or by proxy of the holders of a majority of the shares of AWDGF entitled to vote at the Meeting. The Board of Directors of AWDGF concluded that participation by AWDGF in the proposed Acquisition is in the best interests of AWDGF and its stockholders. The Board also concluded that the proposed Acquisition would not dilute stockholders interests. In reaching this conclusion, the Board considered, among other things, the similar investment strategies of the Funds, the expense benefits for the stockholders expected to result from the Acquisition, the cost thereof, and the tax-free nature of the Acquisition. For a more complete discussion of the factors considered by the Board in approving the Acquisition, see Reasons for the Acquisition in Information About the Proposed Transaction. 6

SUMMARY The following summary highlights differences between the Funds. This summary is not complete and does not contain all of the information that you should consider before voting on the Acquisition. For more complete information, please read this entire document. Note that certain information is presented as of March 31, 2006. At the September 13, 2006 Special Meeting of the Board of Directors of AWDGF referred to below ( September 13 Special Meeting ), the Adviser represented to the Board that, if the information was updated, it would not differ in any material respect. Comparison of Operating Expense Ratios AWDGF, because of its small asset size, has higher operating costs and therefore a higher expense ratio. The Acquisition is expected to result in an operating expense ratio, excluding interest expense, for the combined Fund that is lower than the current expense ratio of AWDGF. The current and estimated combined Fund expense ratios, before interest expense, as of March 31, 2006, are set forth below: Total Operating Expense Ratio (as of March 31, 2006) Projected Total Operating Expense Ratio Reduction AWDGF 1.36%.34% AWDGF II 1.03%.01% Combined Fund 1.02% (pro forma) As the table indicates, the Acquisition would benefit AWDGF stockholders through a sizeable reduction in expenses before interest expense. The Fee Table, attached hereto as Appendix A, describes the fees and expenses of each Fund as of March 31, 2006 and includes expenses for the combined Fund on a pro forma basis assuming that the Acquisition is approved by stockholders of AWDGF. Comparison of Investment Advisory Fees Since October 1, 2005, the advisory fee rates for each of AWDGF and AWDGF II are identical. The advisory fee rates for the Funds are as follows: Advisory Fee Rates AWDGF.90% AWDGF II.90%* Combined Fund.90% * The effective advisory fee rate for AWDGF II, as of March 31, 2006, was.95%, which is a blended rate because prior to October 1, 2005, the Fund paid the Adviser an advisory fee at an annual rate of 1.00%. Comparison of Investment Objectives and Policies The Funds investment objectives and strategies are similar but AWDGF II has a somewhat broader strategy that allows for investments of up to 20% of its assets in corporate fixed-income securities. The following table shows the Funds investment objectives and certain principal investment strategies. Investment Objective: AWDGF AWDGF s investment objective is to seek high current income by investing exclusively in fixed income securities denominated in U.S. dollars. AWDGF II AWDGF II s primary investment objective is to seek high current income. Its secondary investment objective is capital appreciation. 7

Principal Investment Strategies: AWDGF Under normal circumstances, the Fund invests at least 80% of its net assets in U.S. dollar-denominated debt obligations issued or guaranteed by foreign governments and zero coupon obligations issued or guaranteed by the U.S. Government, its agencies or instrumentalities, including participation in loans between foreign governments and financial institutions, and interests in entities organized and operated for the purpose of restructuring the investment characteristics of instruments issued or guaranteed by foreign governments ( Sovereign Debt Obligations ). Under normal circumstances, the Fund invests at least 75% of its total assets in (i) Sovereign Debt Obligations and (ii) Zero Coupon Obligations. Substantially all of the Fund s assets are invested in high yield, high risk (i.e., below investment grade) debt securities. AWDGF II The Fund invests, under normal circumstances, at least 80% of its total assets in U.S. dollar-denominated debt securities issued or guaranteed by foreign governments, including Sovereign Debt Obligations. The Fund may invest up to 20% of its total assets in U.S. corporate fixed income securities. Substantially all of the Fund s assets are invested in high yield, high risk (i.e., below investment grade) debt securities. As the table above shows, each Fund invests a majority of its assets in Sovereign Debt Obligations. In addition, the Funds are subject to similar investment strategies and have the same portfolio management team. However, as noted above, AWDGF II may invest up to 20% of its total assets in U.S. corporate fixed income securities whereas AWDGF normally does not invest in corporate fixed-income securities. A more detailed comparison of the investment strategies and policies of the Funds is provided in Appendix B. You can find additional information on the Funds in the SAI. At the Special Meeting of the Board of Directors of AWDGF II held on September 13, 2006, the Board of Directors of AWDGF II approved a change in AWDGF II s investment policies to allow it to invest in non-u.s. Dollar-denominated debt securities as well as U.S. Dollar-denominated debt securities. Under the policies approved by the Board, AWDGF II would also be able to invest without limit in emerging market and developed market government securities as well as in debt securities of U.S. and non-u.s. corporate issuers. The Adviser expects that these broader guidelines will allow the combined Fund access to broader investment opportunities over time. The combined Fund will continue to invest a substantial portion of its assets in high yield, below investment grade securities. In connection with these policy changes, the Board approved a change in AWDGF II s name to AllianceBernstein Global High Income Fund, Inc. The contemplated policy changes are dependent on AWDGF II s stockholders approving the elimination of a fundamental policy that requires AWDGF II to invest at least 65% of its assets in U.S. Dollar-denominated Sovereign Debt Obligations. The 65% limitation policy would not permit the combined Fund to invest, without limit, in non-u.s. Dollar-denominated debt securities. The Acquisition is not contingent on AWDGF II s stockholders approving the elimination of this fundamental policy. If the proposal is not approved by its stockholders, AWDGF II s investment guidelines will be expanded only with respect to 35% of its assets. The Board believes that AWDGF stockholders should benefit over time from the broadened investment mandate of AWDGF II, regardless of whether the elimination of the fundamental policy is approved by AWDGF II s stockholders. However, AWDGF stockholders should recognize that AWDGF II s broader investment universe, both now and as it is proposed to be further broadened, involves greater risk than that of AWDGF. 8

In connection with the Acquisition, at the September 13 Special Meeting, the Board of Directors of AWDGF approved adoption of a new policy, upon approval of the Acquisition, that AWDGF may invest up to 20% of its net assets in corporate fixed income securities, which include debt securities, convertible securities and preferred stocks of corporate issuers. In addition to the adoption of that policy, the Board of Directors also granted the Adviser the authority to operate AWDGF pursuant to the same investment policies and restrictions that govern AWDGF II. Each of the foregoing changes is subject to AWDGF stockholders approving the Acquisition. The intent of these changes is to allow the repositioning of AWDGF s portfolio to align it with the broader investment strategies of AWDGF II prior to the effective date of the Acquisition. The costs of the portfolio repositioning are expected to be approximately $75,000, or $0.01 per share. Upon the recommendation of the Adviser, the Board determined that it would be appropriate for AWDGF to pay the costs of the portfolio repositioning because AWDGF s stockholders would derive the greatest benefits from the Acquisition. Principal Risks Each Fund is subject to market risk, interest rate risk, foreign risk, emerging markets risk, and currency risk. A description of each of these and other risks is provided in Appendix C. Federal Income Tax Consequences No gain or loss will be recognized by the AWDGF stockholders except with respect to cash received in lieu of fractional shares of AWDGF II by non-drip stockholders, as a result of the Acquisition. The aggregate tax basis of the shares of AWDGF II received by a stockholder of AWDGF (including any fractional shares to which the stockholder may be entitled) will be the same as the aggregate tax basis of the stockholder s shares of AWDGF, decreased by any cash received and increased by any gain recognized with respect to cash received in lieu of fractional shares by non-drip stockholders. The holding period of the shares of AWDGF II received by a stockholder of AWDGF (including any fractional shares to which the stockholder may be entitled) will include the holding period of the shares of AWDGF held by the stockholder, provided that such shares are held as capital assets by the stockholder of AWDGF at the time of the Acquisition. The holding period and tax basis of each asset of AWDGF in the hands of AWDGF II as a result of the Acquisition will be the same as the holding period and tax basis of each such asset in the hands of AWDGF prior to the Acquisition. Any gain or loss realized by a stockholder of AWDGF upon receipt of cash in lieu of fractional shares of AWDGF II by non-drip stockholders will be recognized by the stockholder and measured by the difference between the amount of cash received and the basis of the fractional share and, provided that the AWDGF shares surrendered constitute capital assets in the hands of the stockholder, will be capital gain or loss. This tax information is based on the advice of Seward & Kissel LLP, counsel to each of the Funds. It is a condition to the closing of the Acquisition that such advice be confirmed in a written opinion of counsel. An opinion of counsel is not binding on the Internal Revenue Service. AWDGF has realized capital gains and capital loss carryforwards, which would partially offset these gains leaving no capital loss carryforwards that would be transferred in the Acquisition. It is anticipated that AWDGF will make a distribution of capital gains to stockholders prior to the closing of the Acquisition. The per share amount of capital loss carryforwards of AWDGF II before the Acquisition, as of March 31, 2006, was $1.15 per share and, after giving effect to the Acquisition as if it occurred on such date, the per share amount of capital loss carryforwards of the combined Fund will be $1.02 per share. The decrease in per share amount is due to the spreading of losses remaining available over the merged share base based on the estimated share conversion ratio. AWDGF s stockholders would potentially benefit from the increased amount of losses available, but, as a practical matter, we do not believe that this will affect AWDGF s stockholders since we do not expect the redeployment of the combined Fund s assets or its continuing investments to result in substantial capital gains. Service Providers The Funds have the same service providers, which will continue in their capacity after the Acquisition. 9

Comparison of Stockholder Services The stockholder services of each Fund are generally the same. The DRIP, which is available to the Funds stockholders, provides automatic reinvestment of dividends and capital gain distributions in additional Fund shares. The DRIP also allows stockholders to make optional cash investments in Fund shares through a plan agent. Assuming the Acquisition is approved, the DRIP stockholders of AWDGF will automatically be enrolled in the DRIP for AWDGF II. A more detailed discussion of the DRIP and other stockholder services and procedures is provided in Appendix D. Comparison of Business Structures Each Fund is organized as a Maryland corporation and is governed by its Charter, Bylaws and Maryland law. Generally, there are no significant differences between the Funds in terms of their respective corporate organizational structure. For more information on the comparison of the business structure of the Funds, see Appendix D. 10

INFORMATION ABOUT THE PROPOSED TRANSACTION Introduction This Prospectus/Proxy Statement is provided to you to solicit your proxy for exercise at the Meeting to approve the acquisition of the assets and assumption of the liabilities of AWDGF by AWDGF II and the subsequent liquidation and dissolution of AWDGF. The Meeting will be held at 1345 Avenue of the Americas, 41st Floor, New York, New York 10105 at 11:30 a.m., Eastern Time, on December 12, 2006. This Prospectus/Proxy Statement, the accompanying Notice of the Special Meeting of Stockholders and the enclosed proxy card are being mailed to stockholders of AWDGF on or about October 27, 2006. Description of the Plan As provided in the Plan, AWDGF II will acquire all the assets and assume all the liabilities of AWDGF at the effective time of the Acquisition (the Effective Time ). In return, AWDGF II will issue, and AWDGF will distribute to its stockholders, a number of full and fractional shares of AWDGF II (and cash in lieu of fractional shares for non-drip stockholders), determined by dividing the net value of all the assets of AWDGF by the NAV of one share of AWDGF II. For this purpose, the Plan provides the times for and methods of determining the net value of the assets of each Fund. The Plan provides that stockholders of AWDGF will be credited with shares of AWDGF II (or cash in lieu of fractional shares for non-drip stockholders) corresponding to the aggregate NAV of the AWDGF s shares that the stockholder holds of record at the Effective Time. Following the distribution of shares of AWDGF II in full liquidation of AWDGF, AWDGF will wind up its affairs, and liquidate and dissolve as soon as is reasonably practicable after the Acquisition. In the event the Acquisition does not receive the required stockholder approval, AWDGF will continue its operations and its Directors will consider what future action, if any, is appropriate. The projected expenses of the Acquisition, largely those for legal, accounting, printing and proxy solicitation expenses, are estimated to total approximately $236,000, or $0.03 per share, and will be borne by AWDGF. The Acquisition is expected to occur in the first quarter of 2007. The Acquisition is conditioned upon approval of the Plan by AWDGF stockholders and AWDGF satisfying the terms of the Plan. Under applicable legal and regulatory requirements, none of AWDGF s stockholders will be entitled to exercise objecting stockholders appraisal rights, i.e., to demand the fair value of their shares in connection with the Acquisition. Therefore, stockholders will be bound by the terms of the Acquisition under the Plan. However, any stockholder of AWDGF may sell shares of the Fund s common stock on the NYSE prior to the Acquisition. The shares of AWDGF may cease trading on the NYSE beginning several days prior to the date of the Acquisition. Any cessation of trading will be accomplished in compliance with NYSE rules, including issuance of a press release. After the Acquisition, AWDGF s shares of common stock will be removed from listing on the NYSE. In addition, AWDGF s shares of common stock will be withdrawn from registration under the Securities Exchange Act of 1934 and AWDGF will deregister as an investment company under the Investment Company Act of 1940, as amended (the 1940 Act ) and will dissolve under Maryland law. Completion of the Acquisition is subject to certain conditions set forth in the Plan, some of which may be waived by a party to the Plan. The Plan may be amended in any mutually agreed manner, except that no amendment may be made subsequent to stockholder approval of the Acquisition that materially alters the obligations of either party. The parties to the Plan may terminate the Plan by mutual consent and either party has the right to terminate the Plan under certain circumstances. Among other circumstances, either party may at any time terminate the Plan unilaterally upon a determination by the party s Board of Directors that proceeding with the Plan is not in the best interests of the Fund or its stockholders. A copy of a form of the Plan is attached as Appendix E. 11

Reasons for the Acquisition At the September 13 Special Meeting, the Adviser recommended that the Board of Directors of AWDGF approve and recommend to the Fund s stockholders for their approval the proposed Plan and the Acquisition. The Directors considered the factors discussed below from the point of view of the interests of the Fund and its stockholders. After careful consideration, the Board of Directors (including all Directors who are not interested persons of the Fund, the Adviser or its affiliates) determined that the Acquisition would be in the best interests of the Fund s stockholders and that the interests of existing stockholders of the Fund would not be diluted as a result of the Acquisition. The Directors of AWDGF approved the Plan and the Acquisition and recommended that the stockholders of AWDGF vote in favor of the Acquisition by approving the Plan. The Adviser presented the following reasons in favor of the Acquisition: The Funds date back to 1992-93, when they were launched in close succession. AWDGF s current assets are, as of March 31, 2006, $129 million. AWDGF II s current assets are, as of March 31, 2006, $984 million. AWDGF II was modeled after AWDGF and has similar investment objectives, with a somewhat broader strategy that allows for investments in corporate fixed-income securities. The Adviser discussed with the Board that it believes that the Acquisition of AWDGF, which is a smaller fund with higher operating expenses, by its larger counterpart, AWDGF II, would benefit the Fund and its stockholders. AWDGF and AWDGF II have similar investment strategies of primarily investing in U.S. Dollar-denominated Sovereign Debt Obligations. The Adviser believes that AWDGF s stockholders would benefit from the somewhat broader strategy of AWDGF II because it may also invest in corporate securities. The Adviser believes that this benefit would be augmented by virtue of the policy changes that it recommended to, and were approved by, the Board, which would permit AWDGF II to also invest in non-u.s. Dollar-denominated debt securities. The Adviser discussed that, historically, there has been some disparity between the Funds respective performances at NAV, with AWDGF II generally outperforming AWDGF. The Adviser believes that these disparities are primarily due to AWDGF II s ability to invest in corporate debt and its lower expenses. As of July 31, 2006, AWDGF II s cumulative return for year-to-date, and average annual total returns for 1, 3, 5 and 10 years outperformed AWDGF s returns for the same periods. The five-year annualized return, for example, was.81% higher for AWDGF II. On a calendar year basis, AWDGF II outperformed AWDGF in seven of the last ten years. At the September 13 Special Meeting, the Directors (with the advice and assistance of independent counsel) also considered, among other things: potential stockholder benefits including (i) the fact that total expenses before interest expense of the combined Fund would be significantly lower than the current expenses before interest expense of AWDGF and (ii) the potential for AWDGF s stockholders to benefit from increased earnings of the combined Fund due to the higher earnings of AWDGF II, and (iii) the redeployment of AWDGF s portfolio immediately prior to the Acquisition to take advantage of AWDGF II s ability to invest in corporate debt securities; the current asset levels of AWDGF and the combined pro forma asset levels of AWDGF II; the historical investment performance of the Funds, including the fact that AWDGF II s investment performance over time has been better than that of AWDGF; the similar investment objectives and principal investment strategies of the Funds, as well as the fact that AWDGF II may also invest in corporate fixed income securities and the proposed change to AWDGF II s fundamental and non-fundamental investment policies discussed above; the distribution and trading history of the two Funds, including the fact that the trading price of AWDGF II s common stock compared to its NAV has, over time and currently, been somewhat more favorable than that of AWDGF (trading price information for the two Funds is provided in Appendix G); 12

the amount and type of leverage used by the two Funds; the tender offer/repurchase policies of the two Funds, which are very similar; and the portfolio management team, which is the same for AWDGF and AWDGF II, and will continue to manage the combined portfolios after the Acquisition. The Directors also considered, among other things: the historical and pro forma tax attributes of AWDGF, including that AWDGF has realized gains and no loss carryforwards and that AWDGF II has sizeable capital loss carryforwards, although the availability of these capital loss carry forwards in the combined Fund may not be meaningful because it is not expected that the redeployment of the Fund s assets or its continuing investments would result in substantial capital gains; the form of the Plan and the terms and conditions of the Acquisition; the fact that the Funds have identical advisory fees; whether the Acquisition would result in the dilution of stockholders interests; the number of stockholder accounts and average account sizes of the Funds; changes in service providers that would result from the Acquisition; the fact that realignment of the investment holdings of AWDGF before the effective date of the Acquisition is anticipated and associated costs would be borne by AWDGF; the benefits of the Acquisition to persons other than AWDGF and its stockholders, in particular, the Adviser, which will benefit from the elimination of monitoring and administering AWDGF, a relatively small fund that is duplicative of its substantially similar and larger counterpart, AWDGF II; the fact that AWDGF II will assume all the liabilities of AWDGF ; the expected federal income tax consequences of the Acquisition; whether the Acquisition would be preferable to acquisition by potential acquirers other than AWDGF II, including funds that are not sponsored by the Adviser; the fact that the costs of the Acquisition will be borne by AWDGF; and the fact that the Adviser has agreed to indemnify AWDGF II for a three-year period against any undisclosed or other liability of AWDGF, to reimburse AWDGF II for any costs in connection with investigating any such liability and to continue certain insurance coverage for AWDGF for a three-year period. Also at the September 13 Special Meeting, the Board of Directors of AWDGF II (comprised of the same persons as the Board of AWDGF) approved the proposed Plan. No vote of stockholders of AWDGF II is required in connection with the Acquisition. Description of Securities to be Issued Under the Plan, AWDGF II will issue additional shares of common stock for distribution to AWDGF. Under its Charter and Bylaws, AWDGF II may issue up to 100,000,000 shares of common stock, par value $.01 per share. Each share of AWDGF II represents an equal proportionate interest with other shares of the Fund. Each share has equal earnings, assets and voting privileges and is entitled to dividends and other distributions out of the income earned and gain realized on the assets belonging to the Fund as authorized by the Board of Directors. Shares of AWDGF II entitle their holders to one vote per full share and fractional votes for fractional shares held. Shares of AWDGF II issued in the Acquisition will be fully paid and non-assessable. 13

Dividends and Other Distributions On or before the Closing Date, as defined in the Plan, AWDGF will, if necessary, declare and pay as a distribution substantially all of its undistributed net investment income, net short-term capital gain, net long-term capital gain and net gains from foreign currency transactions, as applicable, to maintain its treatment as a regulated investment company. Surrender and Exchange of AWDGF Stock Certificates After the Plan s Effective Time, each holder of a certificate (or certificates) formerly representing shares of AWDGF will be entitled to receive, upon surrender of the certificate, a certificate representing the number of AWDGF II shares distributable as a result of the Acquisition. Promptly, after the Plan s Effective Time, Computershare Trust Company, N.A. will mail to AWDGF s certificate holders instructions and a letter of transmittal for use in surrendering the certificates. Please do not send share certificates at this time. Although the certificates will be deemed for all purposes to evidence ownership of the equivalent number of AWDGF II shares, no dividends will be paid to holders of certificates of AWDGF until the holder surrenders the certificates in accordance with the instructions and letter of transmittal. Any dividends on AWDGF II shares payable after the Effective Time, will be paid to the certificate holder, without interest, when that holder surrenders an AWDGF share certificate for exchange. Each AWDGF stockholder will receive the number of full shares of AWDGF II, plus fractional shares for stockholders that participate in a DRIP and cash in lieu of any fractional shares for non-drip stockholders, having an aggregate NAV that, on the effective date of the Acquisition, is equal to the aggregate NAV of the stockholder s shares of AWDGF II. Stockholders of AWDGF will recognize no gain or loss, except with respect to any cash received in lieu of fractional AWDGF II shares by non-drip stockholders. Federal Income Tax Consequences Subject to certain stated assumptions contained therein, the Funds will receive an opinion of Seward & Kissel LLP, its counsel, substantially to the following effect: (i) the Acquisition will constitute a reorganization within the meaning of section 368(a) of the Code and that the Funds will each be a party to a reorganization within the meaning of section 368(b) of the Code; (ii) a stockholder of AWDGF will recognize no gain or loss on the exchange of the stockholder s shares of AWDGF solely for shares of AWDGF II, except with respect to cash received in lieu of a fractional share of AWDGF II by non-drip stockholders in connection with the Acquisition; (iii) neither AWDGF nor AWDGF II will recognize any gain or loss upon the transfer of all of the assets of AWDGF to AWDGF II in exchange for shares of AWDGF II (plus cash in lieu of certain fractional shares by non-drip stockholders) and the assumption by AWDGF II of the liabilities of AWDGF pursuant to a Plan or upon the distribution of shares of AWDGF II to stockholders of AWDGF (and cash to non-drip stockholders for their fractional shares) in exchange for shares of AWDGF; (iv) the holding period and tax basis of the assets of AWDGF acquired by AWDGF II will be the same as the holding period and tax basis that AWDGF had in such assets immediately prior to the Acquisition; (v) the aggregate tax basis of shares of AWDGF II received in connection with the Acquisition by each stockholder of AWDGF (including any fractional share to which the stockholder may be entitled) will be the same as the aggregate tax basis of the shares of AWDGF surrendered in exchange therefore, decreased by any cash received by non-drip stockholders and increased by any gain recognized on the exchange; (vi) the holding period of shares of AWDGF II received in connection with the Acquisition by each stockholder of AWDGF (including any fractional share to which the stockholder may be entitled) will include the holding period of the shares of AWDGF surrendered in exchange therefor, provided that such AWDGF shares constitute capital assets in the hands of the stockholder as of the Closing Date; (vii) AWDGF II will succeed to the capital loss carryovers of AWDGF, if any, under section 381 of the Code, but the use by AWDGF II of any such capital loss carryovers (and of capital loss carryovers of AWDGF II) may be subject to limitation under section 383 of the Code; and (viii) any gain or loss realized by a non-drip stockholder of AWDGF upon the receipt of cash for a fractional share of AWDGF II to which the stockholder is entitled will be recognized to the stockholder and measured by the difference between the amount of cash received and the basis of the fractional share and, provided that the AWDGF shares surrendered constitute capital assets in the hands of 14

the stockholder, will be capital gain or loss. This opinion of counsel will not be binding on the Internal Revenue Service or a court and there is no assurance that the Internal Revenue Service or a court will not take a view contrary to those expressed in the opinion. Stockholders of AWDGF are encouraged to consult their tax advisers regarding the effect, if any, of the Acquisition in light of their individual circumstances. Because the foregoing only relates to the federal income tax consequences of the Acquisition, those stockholders also are encouraged to consult their tax advisers as to state and local tax consequences, if any, of the Acquisition. Capitalization Information For information on the existing and pro forma capitalization of the Funds, see Appendix F. Trading History and Share Price Data For information on the trading history and share price data for the Funds, see Appendix G. INFORMATION ABOUT THE FUNDS AWDGF and AWDGF II are each a non-diversified, closed-end management investment company registered under the 1940 Act and organized as a Maryland corporation in 1992 and 1993, respectively. Management of the Funds The Board of Directors of each Fund directs the management of the business and affairs of the Fund. Each Board of Directors approves all significant agreements between the respective Fund and persons or companies furnishing services to it, including a Fund s agreements with the Adviser and the Fund s administrator, custodian and transfer and dividend disbursing agent. The day-to-day operations of a Fund are delegated to its officers and the Fund s Adviser, subject to the Fund s investment objective and policies and to general supervision by the Fund s Board of Directors. Subsequent to the consummation of the Acquisition, the directors and officers of AWDGF II will continue to serve as the directors and officers of the combined Fund. Messrs. Paul J. DeNoon, Fernando Grisales, Michael Mon, Douglas Peebles and Matthew Sheridan, members of the Adviser s Global Fixed Income Emerging Market Investment Team, are primarily responsible for day-to-day management of AWDGF s and AWDGF II s portfolios. Mr. DeNoon is a Senior Vice President of the Adviser with which he has been associated since prior to 2001. Mr. Grisales is an Assistant Vice President of the Adviser with which he has been associated since October 2001. Messrs. Mon and Sheridan are Vice Presidents of the Adviser with which they have been associated since prior to 2001. Mr. Peebles is an Executive Vice President of the Adviser with which he has been associated since prior to 2001. Subsequent to the consummation of the Acquisition, Messrs. DeNoon, Grisales, Mon, Peebles and Sheridan will continue to be primarily responsible for day-to-day management of the combined Fund. The SAI provides additional information about the portfolio managers compensation, other accounts managed by the portfolio managers, and the portfolio managers ownership of securities in AWDGF II. Advisory Agreement and Fees Each Fund s investment adviser is AllianceBernstein L.P., 1345 Avenue of the Americas, New York, New York 10105. The Adviser is a leading international investment adviser managing client accounts with assets as of June 30, 2006 totaling more than $625 billion (of which more than $88 billion represented the assets of investment companies). As of June 30, 2006, the Adviser managed retirement assets for many of the largest public and private employee benefit plans (including 41 of the nations FORTUNE 100 companies), for public employee retirement funds in 37 states, for investment companies, and for foundations, endowments, banks and insurance companies worldwide. The 45 registered investment companies managed by the Adviser, comprising 126 separate investment portfolios, currently have approximately 4.0 million stockholder accounts. 15

Under each Fund s advisory agreement with the Adviser (the Advisory Agreement ), the Adviser provides office space, investment advisory services, and order placement facilities for the Fund and pays all compensation of directors and officers of the Fund who are affiliated persons of the Adviser. Under the Advisory Agreements of AWDGF and AWDGF II, each of the Funds pays the Adviser an advisory fee at an annual rate of.90% of its average weekly net assets. Prior to October 1, 2005, each of the Funds paid the Adviser an advisory fee at an annual rate of 1.00% of its average weekly net assets. Such fee is accrued daily and paid monthly. The Advisory Agreements by their terms continue in effect from year to year if such continuance is specifically approved, at least annually, by a majority vote of the directors of a Fund who neither are interested persons of the Fund nor have any direct or indirect financial interest in the Advisory Agreement, cast in person at a meeting called for the purpose of voting on such approval. A discussion regarding the basis for the Board of Directors approving the investment advisory contracts of AWDGF and AWDGF II is available in AWDGF s Annual Report to Stockholders for AWDGF s fiscal year ended October 31, 2005 and AWDGF II s Semi-Annual Report for the six months ended September 30, 2005, respectively. The Adviser is the subject of certain legal proceedings instituted by the SEC and the Office of the New York Attorney General. A discussion of those proceedings is presented in Appendix H. Administrator Under administration agreements, the Adviser serves as administrator for AWDGF and AWDGF II. Under the administration agreements, the Adviser performs standard administration services for the Funds. Pursuant to an Administration Agreement, effective October 1, 2005, each of AWDGF and AWDGF II pays the Adviser an administrative fee in the amount of $106,000 and $107,000 per year, respectively, for its costs incurred for providing administrative services, however that the reimbursement may not exceed the prior fee of.15% of average weekly net assets. Prior to October 1, 2005, each of the Funds paid the Adviser an administration fee at an annual rate of.15% of its average weekly net assets. Other Service Providers AllianceBernstein Investor Services, Inc. ( ABIS ), an affiliate of the Adviser, provides stockholder services for the Funds. The Funds compensate ABIS for these services. The Bank of New York, One Wall Street, New York, NY 10286, serves as custodian for AWDGF and AWDGF II. Computershare Trust Company N.A. (formerly known as Equiserve Trust Company), P.O. Box 43010, Providence, RI 02940, serves as the Funds transfer agent. The Bank of New York and Computershare Trust Company will serve, respectively, as custodian and transfer agent for the combined Fund. Ernst & Young LLP serves as the Funds independent registered public accounting firm. 16